The authors offer three ways to elevate a platform business by better using loyal customers.

In recent years, the concept of platform business has become a key topic in discussions predicting the disruption of long-standing industries. In fact, platform business models have radically transformed the way organizations conceive business and have redefined what success looks like.

One of the fundamental differences between traditional pipeline businesses and platforms is that pipelines transfer value on a one-way street between buyer and seller. In platform businesses, value dynamics are multilateral, whereby customers are also contributors and participants. This can lead to valuable network effects, when joining a platform becomes exponentially more valuable the more people have already joined. For example, more Uber riders increases demand for drivers. In turn, this creates more supply and lowers ride prices, activating a virtuous circle of supply-and-demand that fosters exponential growth.

Not all companies are on equal footing in their quest to tap into network effects, and many incumbents bemoan the advantages of startups — easy access to capital, talent, community building, and user-generated content — that come with the promise of exponential growth. Traditional companies, however, can create powerful network effects by tapping into something that’s harder for startups to develop: their existing relationships with some of their most loyal consumers, superconsumers.

The first thing to remember is that superconsumers aren’t simply heavy users. They are emotional buyers who base their purchase decisions on their life aspirations, combining big spending with high engagement and deep interest in new uses for a product. In fact, they make up about 10 percent of consumers for a particular product or category but they can drive between 30 and 70 percent of sales, an even greater share of category profit, and usually close to 100 percent of the insights. Not only do they love the category, they love sharing their opinions of it, too — whether good, bad or ugly.

In other words, these consumers, who are the most engaged and most eager to share their thoughts, are a vital resource for companies that want to truly understand their market and bring network effects to fruition. They are a predisposed group that will take the leap of faith with brands as they embark on their platform journey.

Here are three ways to leverage superconsumers:

Use superconsumers to identify and satisfy unmet needs in your wider customer base.

The wise input of superconsumers allows you to tap into potential superconsumers — people as passionate as superconsumers but who don’t spend as much. Companies should use superconsumers’ insights to refine their decision-making to grow sales and margins across all segments.

For example, Airbnb started out as a platform for people to lease and rent short-term lodging, targeting a younger and more socially engaged crowd. Now, using the insights gained from these superconsumers, it has started to pivot toward a wider consumer base by offering high-end travel services for conventional travelers looking for luxury and “the hotel experience.”

Use superconsumers as use cases to test out new offerings.

Superconsumers’ interest in new product uses and variations is very helpful to businesses looking to ramp up their innovation efforts. Superconsumers know what they want and often take on the role of lead users and early adapters, allowing businesses to experiment more widely.

For example, Glossier, the Millennial cult-favorite beauty brand, launched its Milky Jelly Cleanser after crowdsourcing feedback from its most passionate consumers on social media. With more than 400 comments, the company’s chemist prototyped 40 different versions before landing on the final, superconsumer-approved product.

Use superconsumers to generate the strongest network effects.

Superconsumers are emotionally invested. They’re willing to buy even more and lead others to follow them. They are a brand’s most authentic and passionate ambassadors, which is vital when consumers rely on peer reviews and dislike corporate advertisements.

For example, Netflix tapped into TV superconsumers’ desire to binge-watch shows on demand — especially shows that were tailored precisely to their wants. Both the increase in Netflix’s subscribers and its consumer data attracted creative talent that could produce more niche shows for diversified audiences. The more original content was produced and the more recommendations were fine-tuned, the greater number of people were exposed to Netflix shows they enjoyed, and the more willing they were to subscribe.

Fundamentally, superconsumers are the spark that can help traditional companies set up a new platform business model. They are not just consumers who buy more, but consumers who care more. Through their passion and high engagement, they are a vital lens through which companies can: understand their customers holistically; transition to platform thinking; and perfect the gravitational pull they exert on all their customers and their broader ecosystem.

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Social Studies

Pro-Surfer Kelia Moniz and Hailey Bieber in pieces from their collaboration with Roxy, called Sister. ⁣
It’s an apt name for a four-season collection inspired by the pair’s friendship, which was evident as they did their rounds with press, sharing laughs as Baldwin passed a cell phone to Moniz to show her a series of text messages the two then giggled about.⁣
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“We’re friends, but we’re a lot more than that and I think the next step of that is basically sisters,” Moniz said. “I don’t have a sister so I feel like a lot of the girls in my life become sisters.”⁣
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Report: @karihamanaka
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BREAKING: Tom Ford has been elected chairman of the Council of Fashion Designers of America.⁣
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WWD broke the news last week that Ford was in line to succeed Diane von Furstenberg, who has held the job for the past 13 years. Under von Furstenberg, along with Steven Kolb, chief executive officer of the CFDA, the organization has ushered in a period of unprecedented growth for American fashion, followed by the current period of volatility triggered by seismic changes within and outside of fashion.⁣
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Von Furstenberg had succeeded Stan Herman in 2006, who served in the role for 16 years.⁣
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Ford is the 11th person to hold the position (which had previously been titled president until it was upgraded to chairman for Furstenberg in 2015). The roster of presidents has included Herman, Sydney Wragge, Norman Norell, Oscar de la Renta, Herbert Kasper, Bill Blass, Mary McFadden, Perry Ellis and Carolyne Roehm.
Report: Lisa Lockwood
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Victoria's Secret swimwear is back. 👙
The brand eliminated its swimwear line in spring 2016 in an effort to focus on its core lingerie business. But shifting consumer tastes and a movement toward brands that promote inclusivity, such as American Eagle Outfitters’ Aerie, as well as start-ups like Adore Me and ThirdLove, have caused Victoria’s Secret to lose market share.
The move back into swimwear is an attempt to win back some of the lost market share in what had been a $525 million business for the retailer. Victoria’s Secret also said it was now selling swim accessories on its website, such as sunglasses.
Report: Kellie Ell
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Kate Hudson is a vision in red Oscar de la Renta. The actress turned athleisure guru won an award last night for Entrepreneur of the Year for her brand Fabletics.
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Twiggy, who was previously known as 'The Face of the 60s', has taken on another title. Yesterday, she was awarded the Dame Commander of the Order of the British Empire, at Buckingham Palace for her services to fashion, the arts and charity. The former model wore a stylish white three-piece suit by Stella McCartney and a statement fascinator as she received the prestigious award from Prince Charles.
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Louis Vuitton, whose fall-winter 2019 men’s wear collection drew inspiration from Michael Jackson’s pop-culture legacy, has reacted swiftly to the mounting controversy in the wake of the “Leaving Neverland” documentary.
Virgil Abloh has commented on the Michael Jackson-inspired looks from his fall-winter 2019 for Louis Vuitton. “I am aware that in light of this documentary the show has caused emotional reactions. I strictly condemn any form of child abuse, violence or infringement against any human rights,” Virgil Abloh, men’s artistic director at Vuitton, said in a statement released exclusively to WWD.
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EXCLUSIVE: Tom Ford tapped as new chairman of the CFDA, sources say.
Tom Ford — chairman of the CFDA?
That’s the plan, according to sources, who say that Diane von Furstenberg is ready to step down from the post, with Ford poised to take over. Both the CFDA and Ford declined comment Wednesday.
The move would come after von Furstenberg’s legendary 13-year tenure during which, working with CFDA chief executive officer Steven Kolb, she oversaw a period of unprecedented, heady growth for American fashion and the organization itself, followed by the current period of volatility triggered by seismic cultural changes within and outside of fashion. The CFDA board is due to meet Tuesday to vote on Tom Ford's nomination as chairman of the association. Link in bio.
Report: Bridget Foley, @lisajlockwood .
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